Applied Blockchain, Inc. announced today that it will move into the cryptographic services business after a $ 32.5 million private investment closed on July 30, 2021. The private placement was led by Bitmain, a producer of blockchain and artificial intelligence (AI) applications. Proceeds will be used to finance land acquisition, construction of facilities, acquisition of components and other project costs related to the Company’s management operations in North America. Once built, the hosting facilities will have a capacity of up to 500 megawatts and will allow the company to generate stable cash flow through long-term management agreements and reduce the company’s own mining electricity costs.
Bitmain joins SparkPool and GMR as strategic partners for the company, assisting in the operation and development of its mining and management businesses and in identifying other strategic business initiatives. In addition to strategic and partnership partnerships, the Company has entered into long-term management agreements with Bitmain and GMR.
“A successful private investment will secure the development of a project to establish a large-scale data center in North America,” says Irene Gao, Antminer BD Director, NCmain Region in Bitmain. “We are confident that our partnership with Applied Blockchain will provide professional mining services to take the industry forward.”
“The repression of mining in China provided us with a unique opportunity to launch our own hosting operations with our existing partners and add another blue-chip partner,” said Wes Cummins, CEO and Chairman of Applied Blockchain, Inc. “This new project complements our current mining business, provides real and growing demand for management capacity and leverages domestic resources and talent to create an even more attractive financial profile for our shareholders.”
Cummins continued: “Over the past few months, we have assembled an impressive team of experts, including engineers and contractors with experience in sourcing and building construction facilities. focused on implementation. We will enter into a long-term contract with the utility and strategically locate our hosting operations in the Upper-Central-West region, where there is plenty of energy and plenty of real estate available at an attractive valuation for further expansion. We expect the first 50 megawatts of capacity to be operational before the end of the year, with plans to eventually expand to more than 500 megawatts, making Applied one of the world’s largest hosting providers. “
“This industry is young and evolving rapidly, and that’s why it’s important for a company to be able to respond quickly to seize opportunities like this,” adds Cummins, “I am proud of our team and our relationship built in such a short time to capitalize on and implement this new business.”
B. Riley Securities, Inc. acted as an investment intermediary in private placement.